Impact of corporate governance on REITs performance in Malaysia and Singapore / Fatin Ameera Mohd Fahamee

As a result of significant corporate scandals and failures worldwide, there has been a resurgence of interest in the effect of corporate governance on firm performance. Most of the research on corporate governance and its effect on firm performance has been conducted in developed countries and markets, most notably the United Kingdom and the United States, while there is scant data in Asian countries, most notably Malaysia and Singapore. The agency theory is primarily used in this study to examine the relationship between corporate governance and business performance. The agency theory is concerned with the conflict between principals and agents (i.e., shareholders and managers), which obstructs value maximisation. Boards of directors, ownership concentration, and managerial ownership have all been suggested to be effective corporate governance systems for resolving the agency dilemma between shareholders and management. Corporate governance (CG) procedures have the potential to have a large impact on corporate performance (FP). The goal of this study was to determine whether CG mechanisms influenced the firm performance of Malaysian real estate investment trusts (M-REITs) and Singapore real estate investment trusts (S-REITs). Panel data analysis is used to examine the effect of corporate governance's variable on firm performance. The firm performance was quantified by using Return on Assets (ROA). The data were gathered from the year 2011 until 2020 from the annual reports accessible on Bursa Malaysia and the Singapore Exchange (SGX). The results indicate that M-REITs were substantially more affected by corporate governance mechanisms than S-REITs.